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Main Authors: Caldarola, Bernardo, Fontanelli, Luca
Format: Preprint
Published: 2024
Subjects:
Online Access:https://arxiv.org/abs/2409.17035
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author Caldarola, Bernardo
Fontanelli, Luca
author_facet Caldarola, Bernardo
Fontanelli, Luca
contents Recent empirical evidence shows that investments in ICT disproportionately improve the performance of larger firms versus smaller ones. However, ICT may not be all alike, as they differ in their impact on firms' organisational structure. We investigate the effect of the use of cloud services on the long run size growth rate of French firms. We find that cloud services positively impact firms' growth rates, with smaller firms experiencing more significant benefits compared to larger firms. Our findings suggest cloud technologies help reduce barriers to digitalisation, which affect especially smaller firms. By lowering these barriers, cloud adoption enhances scalability and unlocks untapped growth potential.
format Preprint
id arxiv_https___arxiv_org_abs_2409_17035
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Scaling up to the cloud: Cloud technology use and growth rates in small and large firms
Caldarola, Bernardo
Fontanelli, Luca
General Economics
Economics
Recent empirical evidence shows that investments in ICT disproportionately improve the performance of larger firms versus smaller ones. However, ICT may not be all alike, as they differ in their impact on firms' organisational structure. We investigate the effect of the use of cloud services on the long run size growth rate of French firms. We find that cloud services positively impact firms' growth rates, with smaller firms experiencing more significant benefits compared to larger firms. Our findings suggest cloud technologies help reduce barriers to digitalisation, which affect especially smaller firms. By lowering these barriers, cloud adoption enhances scalability and unlocks untapped growth potential.
title Scaling up to the cloud: Cloud technology use and growth rates in small and large firms
topic General Economics
Economics
url https://arxiv.org/abs/2409.17035